Explanation
BACKGROUND:
This legislation will authorize the Director of the Department of Technology and the Director of the Department of Columbus Public Health, to renew and modify a contract with Netsmart Technologies, Inc., for annual software maintenance and support and hosting services. The system was initially purchased by the Columbus Board of Health by authority of ordinance 2078-2005 (EL005861), and annual maintenance and support was last renewed by authority of ordinance 0364-2012, passed March 26, 2012, through purchase order EL012703. This renewal will provide software maintenance and support for the period April 1, 2013 to March 31, 2014, at a cost of $13,672.00.
This legislation will also authorize a modification to the contract for Netsmart to provide application hosting services. The term of the hosting service would be for five years, from April 1, 2013 to March 31, 2018. This legislation will provide funding for the first year of the hosting service and associated professional services to transition the Netsmart applications to a hosted environment. The cost for the first year is $42,220; which includes $15,120.00 for the first year of hosting services, and $27,100 in one time professional service fees to transition the application to Netsmart's data center. Payment for subsequent annual terms is contingent on available funding and approval of proper City authorities. The proposed agreement enables the City to cancel the agreement in the event that funds are not appropriated to pay for future annual terms. If the agreement is terminated prior to the end of the five year term, the City must provide 60 days written notice, and may be subject to early termination fees of no more than the amount of funds already appropriated, encumbered, and unliquidated on an open certified purchase order.
The unique technology employed by the Netsmart software requires technical support services that are not available using City staff. Consequently, a hosted solution is in the best interests of the City to take full advantage of the Netsmart software used by the Health Department. Netsmart software technology was not fully understood at the time of the original agreement, so the need for this contract modification was not known when the original agreement was executed. Netsmart is the sole source provider of its software and application hosting services, so it is not possible for the City to obtain the service through alternate procurement methods. The cost of the one-time professional services and ongoing hosting fees were negotiated with Netsmart.
This purchase is necessary to meet the requirements of the Franklin County ADAMH Board and the Ohio Department of Alcohol and Drug Addiction Services. Netsmart Technologies, Inc. will provide the Alcohol and Drug Abuse Program operated by the Columbus Public Health Department with ongoing technical support for the system.
As the vendor is the only provider of software maintenance and support and hosting services for the systems licensed to the City, this ordinance is being submitted in accordance with the provisions of Sole Source procurement of the Columbus City Code Section 329.07.
EMERGENCY:
Emergency legislation is requested to maintain ongoing and uninterrupted services for the Avatar claims billing systems.
FISCAL IMPACT:
In years 2011 and 2012, the Department of Technology expended $12,396.03 and $13,020.00 respectively for the annual renewal of software maintenance and support and hosting services of the Avatar System. The cost for the 2013 software maintenance and support, hosting services and annual subscription to the Wiley Library is $55,892.00 (Netsmart Technologies), bringing the aggregate contract total, including this request to $120,409.78. The amount of $28,792.00 (which includes the first year of the hosting service fee, in the amount of $15,120.00) is budgeted and available within the Department of Technology, internal services fund. The one-time transition fee, in the amount of $27,100.00, will be coming from the Department of Columbus Public Health Grants fund.
CONTRACT COMPLIANCE:
Vendor Name: Netsmart Technologies, Inc. F.I.D/CC #: 13 - 3680154 Expiration Date: 03/05/2015
Title
To authorize the Director of the Department of Technology and the Director of the Department of Columbus Public Health to renew and modify a contract with Netsmart Technologies, Inc. for software maintenance and support and hosting services for the Avatar claims billing system, the Behavioral Health data system, and the Wiley Library subscription; in accordance with the sole source provisions of the Columbus City Code; to authorize the expenditure of $28,792.00 from the Department of Technology, internal services fund and $27,100.00 from the Department of Columbus Public Health, grant fund and to declare an emergency ($55,892.00).
Body
WHEREAS, this legislation will authorize the Director of the Department of Technology and the Director of the Department of Columbus Public Health, to renew and modify a contract with Netsmart Technologies, Inc., for annual software maintenance and support and hosting services. This renewal will provide software maintenance and support for the period April 1, 2013 to March 31, 2014, at a cost of $13,672.00; and
WHEREAS, ordinance number 2078-2005, passed by Council 12/12/2005, authorized the Director of the Department of Columbus Public Health to establish a contract for support of the Avatar claims billing systems and Behavioral Health data system, at the Health Department's facility located at 240 Parsons Ave.; and
WHEREAS, this legislation will also authorize a modification to the contract for Netsmart to provide application hosting services. The term of the hosting service would be for five years, from April 1, 2013 to March 31, 2018. This legislation will provide funding for the first year of the hosting service and associated professional services to transition the Netsmart applications to a hosted environment. The cost for the first year is $42,220; which includes $15,120.00 for the first year of hosting services, and $27,100 in one time professional service fees to transition the application to Netsmart's data center; and
WHEREAS, this purchase is necessary to meet the requirements of the Franklin County ADAMH Board and the Ohio Department of Alcohol and Drug Addiction Services. Netsmart Technologies, Inc. will provide the Alcohol and Drug Abuse Program operated by the Columbus Public Health Department with ongoing technical support for the system; and
WHEREAS, the Department of Technology and Columbus Public Health is requesting that this contract be established in accordance with the sole source provisions of the Columbus City Code, Section 329.07, as the vendor is the only provider of software maintenance and support and hosting services for the systems licensed to the City; and
WHEREAS, an emergency exists in the usual daily operation of the city in that it is immediately necessary to renew and modify a contract with Netsmart Technologies for software maintenance and support and hosting services for the Avatar claims billing systems and the Wiley Library subscription, to avoid service interruption, thereby preserving the public health, peace, property, safety and welfare; Now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Technology and the Director of the Department of Columbus Public Health be and is hereby authorized to renew and modify a contract with Netsmart Technologies, Inc., in the amount of $55,892.00 for software maintenance and support and hosting services for the Avatar claims billing and behavioral health data system, and the Wiley Library subscription which is necessary to meet the requirements of the Ohio Department of Alcohol and Drug Addiction Services, at the Health Department's facility located at 240 Parsons Ave., the contract coverage term period is from April 1, 2013 through March 31, 2014.
SECTION 2. That the expenditure of $28,792.00 is hereby authorized to be expended from:
Division: 47-01|Fund: 514|Sub-fund: 010|OCA Code: 500147|Obj. Level 1:03|Obj. Level 3: 3369|Amount: $13,672.00 - Netsmart Support
Division: 47-01|Fund: 514|Sub-fund: 010|OCA Code: 500147|Obj. Level 1:03|Obj. Level 3: 3369|Amount: $15,120.00 - Netsmart Hosting Fee
SECTION 3. That the expenditure of $27,100.00 is hereby authorized to be expended from:
Division: 50-01|Health Dept. Grants Fund: 251| Health Grant No.: 508320|OCA Code: 505065|Obj. Level 1:03|Obj. Level 3: 3336|Amount: $27,100.00 - Netsmart Hosting/Professional Services
SECTION 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 7. That this agreement is being established in accordance with the sole source provisions of the Columbus City Code, Section 329.07.
SECTION 8: That for the reasons stated in the preamble hereto, which is made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.